Question to the Department for Transport:
To ask the Secretary of State for Transport, if the Government reconsider the national concessionary fares scheme to reflect pressures on tourist areas like Bournemouth, where local authorities must fund concessionary travel for tourists who are eligible bus pass holders.
Under the statutory elements of the English National Concessionary Travel Scheme (ENCTS), Travel Concessionary Authorities (TCA) must reimburse bus operators for all concessionary journeys starting within their boundaries, irrespective of whether the concessionary passholder making the journey is resident in the TCA area. ENCTS funding is part of the non-ringfenced Local Government Finance Settlement provided by the Ministry of Housing, Communities & Local Government. A daytime population metric, which includes domestic tourists, is included in the allocation formulae.
The ENCTS costs around £795 million annually in reimbursement costs to bus operators and any changes to the statutory obligations would need to be carefully considered for its impact on the scheme’s financial sustainability.
The Government is investing in bus services long-term and has confirmed over £3 billion from 2026/27 to support local leaders and bus operators across the country to improve bus services over the remainder of the spending review period. This includes multi-year allocations for local authorities under the Local Authority Bus Grant (LABG) totalling nearly £700 million per year.
Bournemouth, Christchurch and Poole Council will be allocated £17 million under the LABG from 2026/27 to 2028/29, in addition to the £6 million they are already receiving this year. Funding allocated to local authorities to improve services can be used in whichever way they wish to deliver better services for passengers, including helping to fund concessionary travel locally.